After a decree that makes the export of lithium in Brazil more flexible, the Ministry of Mines and Energy (MME) projects investments of R$ 15 billion for the mining sector by 2030

The Ministry of Mines and Energy (MME) has great projections for the Brazilian mining sector for the coming years, since the recently published decree that makes lithium exports more flexible in the country could help attract billionaire investments in Brazil.

After the publication of decree 11.120/2022, made last Wednesday (06/07), which makes lithium export operations more flexible in Brazil, the Ministry of Mines and Energy (MME) projects great results for the mining Brazilian in the future. By the end of 2030, the agency expects that mining in the country will receive a total of R$ 15 billion in investments, boosting the domestic market. 

Flexibility in lithium export operations in Brazil will contribute to attract billionaire investments by the year 2030, points out MME

The Federal Government recently published Decree 11.120/2022, which allows foreign trade operations of lithium minerals and ores and products made from lithium, metallic lithium and lithium alloys and derivatives. In this way, ore export operations will become much more flexible and entrepreneurs from all over the world will turn their attention to the Brazilian mining market. 

Thus, the MME is projecting a total of R$ 15 billion in investments by the end of 2030 for the national mining sector, mainly with a focus on lithium, since the ore is in high demand by the automobile industry for manufacturing of batteries. The search for decarbonization in the transport sector brought the need for new alternatives for the electrification of vehicles and lithium batteries are the most viable equipment in terms of quality of supply.

In this way, investments in lithium exploration in the country will be able to attract new companies with a focus on this decarbonization market. And, among the ore production plants, the MME highlights a strong growth projection for the Jequitinhonha Valley, in Minas Gerais, which concentrates most of the known mineral reserves for lithium production in the country.

Currently, the country accounts for only about 1,5% of world lithium production and, by the end of 2030, this number should jump to 5%, mainly with the application of investments foreseen by the MME. 

Brazil can become a world power in lithium exports with more flexible operations, boosting the battery market 

The projections of the co-CEO of the Canadian Sigma Lithium Resources Corporation, Ana Cabral-Gardner, for the lithium market in Brazil are quite optimistic and the executive commented: “Because of this anachronistic regulation, which classified lithium as of nuclear interest, you fell into a regulatory meander that did not make the product competitive”. In addition, Ana also highlighted the country's position in the international market and said that Brazil will be in the future in an "unbeatable position to feed North America and Europe".

The director of Geology and Mineral Resources at the state-owned Geological Service of Brazil (SGB) pointed out that the flexibility of lithium export operations with the decree corrects an error from the 70s, when the ore was strategically used for nuclear sector and there were few reserves of it in Brazil.

In this context, regulating the export of the product was the most recommended, but times have changed and the current scenario requires flexibility in the marketing of the resource. 

Now, the MME will continue working with Brazilian mining agencies, such as the National Mining Agency (ANM), to boost the lithium market in Brazil and ensure that investments of R$ 15 billion arrive in the period foreseen for the mining of the country.